Ensure adequate liquidity reserves and effective control over liquidity risk with Young & Associates’ liquidity management guidance. We offer expertise in the following categories:
We can help define general liquidity strategies, policies and liquidity metrics to match your business plan and risk profile. We can also assist in developing procedures for addressing liquidity shortfalls in emergency situations. Our customized Contingency Funding Plan identifies potential stress events, early warning indicators and parameters for liquidity stress testing, as well as alternative sources of funds and funding strategies. This includes a detailed Crisis Action Plan to cover different stress scenarios.
We can assist in developing quantitative cash flow forecasts and performing various liquidity analyses, including estimates regarding anticipated funding needs and available funding sources, monitoring cash flow gaps, measuring primary liquidity position and availability of contingent liquidity, as well as monitoring dynamic cash flow ratios, funding concentrations and other liquidity metrics. We can also assist in performing Liquidity Stress Tests. Our assistance includes guidance for keeping the analyses up-to-date and development of a customized Microsoft® Excel model for future use.
Meeting the requirements of the Interagency Guidance on Funding and Liquidity Risk Management and subsequent regulatory guidance, we can assess your risk management system, including accuracy of data inputs, validity of scenarios used in the system and validity of the risk measurement calculations. Our detailed liquidity risk review reports offer an assessment followed by suggested corrective actions and recommendations for improving risk management systems and compliance with regulatory guidance. Our liquidity reviews can help you meet the requirements of the Interagency Guidance on Funding and Liquidity Risk Management. We’re also able to customize the risk management review scope to your specific needs.
Our Interest Rate Risk (IRR) Review report offers corrective actions, recommendations for improving interest rate risk management systems and compliance with regulatory guidance. We can assist you in assessing your ability to meet the requirements of the Joint Policy Statement on IRR and the subsequent regulatory guidance.